Nigeria can cut construction costs through local production – Chime

Jude Chime, CEO of Elan Exhibitions West Africa and chair of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture Trade Fair Committee, spoke with ANOZIE EGOLE about challenges in Nigeria's construction sector. Inflation and exchange rate volatility have significantly impacted construction costs, delivery, and profitability.

Contractors report sharp increases in prices for essential materials, creating uncertainty and forcing project delays or reviews. Fixed-price contracts are becoming more difficult due to unexpected price hikes. International manufacturers are also requesting shorter payment terms, adding pressure on Nigerian businesses. However, these challenges are driving innovation, encouraging local alternatives, and improving procurement planning.

Economic reforms, while creating immediate pressures, should be viewed as long-term opportunities for transparency, investor confidence, and a stable business environment. The construction industry reflects the health of the broader economy, with significant demand for infrastructure projects due to population growth and urbanization.

However, challenges such as financing costs, inflation, and delayed payments hinder project execution and exacerbate cash flow issues. Improving payment processes and fostering collaboration between government and private sector stakeholders could significantly benefit the construction industry and contribute to Nigeria's economic growth.